Kimco Realty Corp.’s strategy is designed to meet today’s challenges and create a growth platform going forward. That is according to the firm’s CEO, Conor Flynn.
According to Flynn, in the retail real estate space, he anticipates store optimization plans to continue as underperforming locations will likely not survive the new world order of retail Darwinism. At the same time, however, he said, “we see strong demand for new stores with particular strength in off-price beauty, fitness, restaurants, medical, and services.”
On the firm’s Q1 call, he noted that the company tracks store openings across the country. “By our count, the number of 2019 openings are over 5,500.”
He also pointed out that “the buy online pick up in-store phenomenon will grow at a significant rate placing more value on physical locations that can adapt and drive even more profitability…We have positioned ourselves to take advantage of and withstand the vicissitudes of the retail real estate environment.”
He noted that the company’s assets are concentrated in high quality markets with high barriers to entry, and anchored by profitable high-volume stores. “These are the locations where retailers want to be, and will invest heavily to integrate e-commerce with their physical footprint.”
He added that when talking to retailer partners, “we have heard consistently that there is no lack of available retail space on the market, but there is a lack of high-quality retail space. Our quality locations below market leases and the diversity of our tenant base give us tremendous flexibility and sustaining power to navigate the current environment. The new age of retail is evolving rapidly, but we are focused on staying ahead of the curve and finding the right real estate to unlock embedded growth.”